Key Takeaways
Bitwise has filed for the first U.S Chainlink ETF, with the same intended to bring institutional exposure to LINK amid rising demand and regulatory scrutiny.
Bitwise Asset Management is in the news today after bringing Chainlink [LINK] to traditional investors. It has done so by filing to launch a new exchange-traded fund (ETF) focused solely on the cryptocurrency oracle platform’s native token.
According to the filing with the U.S Securities and Exchange Commission (SEC), the proposed Bitwise Chainlink ETF would use Coinbase Custody as its designated custodian and facilitate in-kind creation and redemption of LINK. This would also enable investors to buy and sell shares directly with the token.
However, details such as the fund’s ticker, listing exchange, and management fees have not yet been disclosed.
The filing marks a historic first for U.S ETFs. Especially since no ETF has previously been proposed that tracks Chainlink’s native token – LINK.
As it stands, Bitwise Asset Management has submitted a Form S-1 with the U.S Securities and Exchange Commission, outlining the structure and purpose of the fund.
However, the process is far from complete.
This is because the firm must submit additional documentation, known as Form 19b-4, to formally initiate the SEC’s approval process. This could take several months depending on regulatory review and market conditions.
How will it affect LINK?
Needless to say, the Bitwise Chainlink ETF holds considerable significance for the crypto industry. The ETF could legitimize institutional demand for LINK, a token largely driven until now by retail and DeFi markets.
Should the SEC grant approval, the ETF would open the door for pension funds, hedge funds, and other large-scale investors to gain exposure to Chainlink in a compliant, mainstream investment format.
In fact, analysts believe that this could increase the token’s liquidity and potentially contribute to upward price pressure as institutional demand grows.
As expected, the market has already responded positively to the announcement. On the day of filling, for instance, Chainlink’s price climbed by 5% from an intraday low of $22.94 – Reflecting early investor optimism about the ETF’s potential impact.
At the time of writing, LINK was trading at $24.29, following gains of 3.68% in just 24 hours.
The altcoin’s short-term price action underlines how regulatory developments and institutional adoption can influence altcoin valuations in real time.
What about other altcoin ETFs?
Several altcoin-focused ETFs remain in limbo at the SEC. Some have even been postponed until as late as October 2025 for approval or rejection. Hence, the Bitwise Chainlink ETF comes at a pivotal moment for LINK.
The project recently secured a high-profile partnership with Japan’s SBI Holdings. The partnership is expected to unlock innovative use cases such as tokenizing real-world assets and leveraging Chainlink’s oracle technology to verify stablecoin reserves on-chain.
Together, these developments will position LINK for greater institutional relevance and could influence its market trajectory as regulatory clarity and adoption grow hand in hand.
Source: https://ambcrypto.com/link-sees-5-hike-after-bitwise-bets-big-on-chainlink-with-new-etf-filing/
